LoungeMachine
10-06-2005, 03:41 PM
Hurricane contracts to be rebid - U.S. official
Thu Oct 6, 2005 2:52 PM ET
WASHINGTON, Oct 6 (Reuters) - Contracts for clean-up and rebuilding after Hurricane Katrina that were awarded without competition will be opened up for rebidding, the acting head of the Federal Emergency Management Agency said on Thursday.
David Paulison, who took over at FEMA last month after the previous director quit under a hail of criticism, told the Senate Homeland Security Committee that the agency was looking at the no-bid contracts carefully and was striving to reduce dependence on them in future disasters.
"We are going to rebid all of those no-bid contracts and then they were in the process of starting to do that," Paulison said. "And maybe they should have done sooner."
He said he had "never been a fan of no-bid contracts," but that "sometimes you have to do them because of the expediency of getting things done."
Contracts worth at least $1.5 billion were awarded to firms with little or no competition to help clean up and begin the reconstruction of the devastated Gulf Coast region, and local many contractors were pushed aside.
With an estimated total $200 billion cost to rebuild the area, the stakes are high, and lawmakers are raising issue with the way those contracts were awarded.
Sen. Carl Levin, a Michigan Democrat, said federal law requires that reconstruction contracts go to local firms where practicable.
"Yet we have story after story about local workers being displaced by workers who are coming in from other states, who work for less wages," he said.
Paulison said FEMA was working to include local firms.
"We know that, in order to rebuild that community, the people need jobs, they need housing and we're working to do that," he told the committee.
Meanwhile, Sen. John Warner, a Virginia Republican, expressed concern about reports that New Orleans was laying off half of its city workers and that other communities were having problems paying employees because their tax base has been destroyed.
Paulison said FEMA aid to local governments to help them meet payroll expenses is capped at $5 million.
Warner suggested that to address this an amendment could be attached to the Defense Department spending bill currently being debated by the full Senate.
Thu Oct 6, 2005 2:52 PM ET
WASHINGTON, Oct 6 (Reuters) - Contracts for clean-up and rebuilding after Hurricane Katrina that were awarded without competition will be opened up for rebidding, the acting head of the Federal Emergency Management Agency said on Thursday.
David Paulison, who took over at FEMA last month after the previous director quit under a hail of criticism, told the Senate Homeland Security Committee that the agency was looking at the no-bid contracts carefully and was striving to reduce dependence on them in future disasters.
"We are going to rebid all of those no-bid contracts and then they were in the process of starting to do that," Paulison said. "And maybe they should have done sooner."
He said he had "never been a fan of no-bid contracts," but that "sometimes you have to do them because of the expediency of getting things done."
Contracts worth at least $1.5 billion were awarded to firms with little or no competition to help clean up and begin the reconstruction of the devastated Gulf Coast region, and local many contractors were pushed aside.
With an estimated total $200 billion cost to rebuild the area, the stakes are high, and lawmakers are raising issue with the way those contracts were awarded.
Sen. Carl Levin, a Michigan Democrat, said federal law requires that reconstruction contracts go to local firms where practicable.
"Yet we have story after story about local workers being displaced by workers who are coming in from other states, who work for less wages," he said.
Paulison said FEMA was working to include local firms.
"We know that, in order to rebuild that community, the people need jobs, they need housing and we're working to do that," he told the committee.
Meanwhile, Sen. John Warner, a Virginia Republican, expressed concern about reports that New Orleans was laying off half of its city workers and that other communities were having problems paying employees because their tax base has been destroyed.
Paulison said FEMA aid to local governments to help them meet payroll expenses is capped at $5 million.
Warner suggested that to address this an amendment could be attached to the Defense Department spending bill currently being debated by the full Senate.